TORONTO, ONTARIO, Aug 14, 2008 (MARKET WIRE via COMTEX) -- Vaaldiam Resources Ltd. (
CA:VAA:
news,
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profile) announces that it has filed the final prospectus for its previously announced rights offering (the "Rights Offering"). It is anticipated that proceeds from the Rights Offering will be used to complete the previously announced acquisition of RST Recursos Minerais Ltda. ("RST"), purchase additional mining equipment, complete the recommended exploration programs on the RST and Duas Barras properties and to supplement working capital.
Under the Rights Offering, holders of common shares of Vaaldiam as of 5:00 p.m. on August 21, 2008 (the "Record Date") will receive one right for each common share held as of the Record Date. Each two rights will entitle the holder thereof to purchase one common share of Vaaldiam (the "Basic Subscription Privilege") at a price of $0.15 per share. Rights may be exercised until 5:00 p.m. on September 17, 2008 (the "Expiry Time"). Holders of Rights who fully exercise their Rights under the Basic Subscription Privilege are entitled to subscribe pro rata for additional common shares, if available, that were not subscribed for initially.
The subscription price of $0.15 per common share represents a discount of 20% to the volume weighted average of the price of Vaaldiam's common shares on the Toronto Stock Exchange for each of the 20 trading days preceding August 13, 2008. Assuming all of the Rights are exercised, Vaaldiam would issue approximately 112,226,868 common shares for net proceeds of approximately $16.2 million.
Registered shareholders wishing to exercise their rights must forward their completed certificate representing such Rights (the "Certificate") along with the applicable funds to Equity Transfer & Trust Company (the "Subscription Agent") prior to the Expiry Time. Beneficial shareholders should contact their broker for instructions on how to exercise their Rights. Shareholders requiring additional information may refer to a copy of the final short form prospectus dated August 13, 2008 available on SEDAR at
www.sedar.com (the "Final Prospectus").
The Rights will be listed and posted for trading on the Toronto Stock Exchange on August 19, 2008. The Rights will trade under the symbol VAA.RT.
Following the Record Date the Final Prospectus will be mailed to all shareholders and the Certificates will be mailed to all registered shareholders located in Canada and the United Kingdom (collectively the "Eligible Jurisdictions"). Subject to certain exceptions, Certificates will not be mailed to registered shareholders located outside of the Eligible Jurisdictions. Such shareholders will not be permitted to exercise their Rights and in certain cases the Subscription Agent engaged by Vaaldiam will attempt to sell such Rights on behalf of the shareholders on such date or dates and at such price or prices as the Subscription Agent shall determine in its sole discretion. Shareholders should consult the Final Prospectus and their financial advisors to determine their rights and entitlements under the Rights Offering.
Canaccord Capital Corporation has been engaged by Vaaldiam as the Dealer Manager for the Rights Offering